Breeding LoyaltyThrough Smart Analytics

How do you define loyalty?

spend

frequency

volume

Profits

The Loyalty Funnel

Everything you do to build loyalty?

Loyalty Builders

gifts

discount

previews

loyalty card

Is this what delights customers?

…enough to make them love you exclusively!

Loyalty breeds loyalty

Some sterling examples

Why is Amazon such a loved brand?

provides an inexpensive, reliable storage option

focused on solving the specific needs ….allows us to have virtually unlimited capacity while only paying for what we use without upfront investments

Since implementing the on board Intranet, we have gained agility and improved time-to-market

Check out

customer speak

Why is Apple making incredible profits?

It means forever asking, “Why is it this way?” and “How can it be better?” It means rethinking every customer experience until the clutter has fallen away

Apple® announced iBooks® for iPad®, featuring iBooks textbooks, an entirely new kind of textbook that’s dynamic, engaging and truly interactive

Creativity from every corner

Simplicity isn’t simple

Every detail matters

HIRING POLICY

India’s most loved brands

available

aspirational

pioneer

guarantee

Knowing your customer’s perspective

YOU SAY

Special sales previews

Gifts

Reward points

Freebies/ Banded offers

Discounts

THEY SEE

Two different points of view

Nice but not useful

Claiming points can be a grind

Some are so irrelevant

First to get the best stuff

Only on select items

Mix of cynicism & joy = adulterated loyalty

The need to measure loyalty

Knowing the stepping stones to loyalty

know

like

love

adore

Aware

Consider

Use

Favorite

Exclusive Love

One of my Favorites

Will consider sometimes

Last option

Never Consider

How do you stack up? Engagement Funnel

Loyalty Drivers for You Skews in Profile

Bank That Works In Many Countries

Makes Me Feel Successful

Profile similar to general population. Suggests the communication have been equally well received by all demographic

segments

Would Trust My Money In This Bank

Makes Me Feel Confident

Older, less employed, marriedGeographically skewed towards

Geography 1, 2 ,4 & 7

Bank With 24/7 Access Via - Internet/Phone

Makes Me Feel In Control

Is Easy To Deal WithMakes Me Feel Optimistic

An example of how you drive loyalty?

EER^Engagement Erosion Rate

Aware

Consider

Use

Driver Analysis

To deepen engagement convey confidence & trust

Measuring customer endorsement Net Promoter Score: NPS

Detractors PromotersPassives

18-25 year olds 15% 44% 41%

26-35 year olds 45% 23% 32%

36-45 year olds 40% 33% 27%

The younger TG is more loyal

EXAMPLE

Actioning basis customer speak

Sentiment Analysis Overall You Competitor

Any Passives on hours of operation 10% 2% 8%

Positive Promoters on Range of products 2% 1% 7%

18-25 year old Promoters on convenience of locations 2% 1% 10%

36-45 year old Detractors on number of location 20% 9% 35%

26-35 year old Promoters on speed of service 3% 0% 10%

Your competitor has a clear edge in

terms of product range

Your loyal base is under threat from

your competitor’s locational

convenience

To safe guard your loyal base of 18-25 year olds relook locationsTo attract your less loyal 36-45 yr olds need to build product range

BFSI Growth Strategies: The BETS Framework

19

Financial BETSTM

Financial BETS Strategy

B Build Recruit new customersMarket where contribution of customers (accounts) under-indexes

E Engage MoreEngage customers to transact moreMarket where contribution of customers (accounts) over-indexes while Revenue contribution under-indexes

T TreasureFocus on safeguarding position against competitionHigh growth markets where contribution of customers (accounts) as well as Revenue contribution over-index

S SustainMaintain status quoStagnant or declining markets where contribution of customers (accounts) as well as Revenue contribution over-index

Sophisticated Non-Sophisticated

Products Overall Geography 1 Geography 2 Geography 3 Geography 4 Geography 5 Geography 6 Geography 7 Geography 8

Credit Cards E B E T E T B E S

Deposits B S T S E B S B B

Investments E E T B B E B B B

Loans B T T B B S B B S

Mortgages E S S S B B B B B

20

BETS Strategy Map for a Global Bank

Implications for Loyalty BreedersSumming up

Measure, Measure, Measure

Measure

benchmark

track

action

Lose loyalty

• Engagement Funnel• Driver Analysis• Net Promoter Score• Sentiment Analysis• Financial BETSTM

This is your customer number, a number that’s all your own and identifies you as a person to us.

Don’t lose the consumer perspective

Loyalty – Let’s stick with it!